Filing Bankruptcy in Oregon

Talk to a Bankruptcy Lawyer

Bankruptcy is a system of federal law, so the process to file for
Chapter 7 bankruptcy or to file
for Chapter 13 bankruptcy is nearly identical in
every state, including Oregon. However, state law plays an important role,
particularly in setting property exemptions, which determine what property you
get to keep (if you file for Chapter 7) and how much you have to repay your
creditors (if you file for Chapter 13). There are also important resources
available to you by state.

Credit Counseling

Before you file for Chapter 7 or Chapter 13 bankruptcy in Oregon,
you will have to complete mandatory credit counseling with an agency that’s
been approved by the United States Trustee’s Office. Here’s a list
of agencies in Oregon that have been approved to provide this
counseling.

Where to File

In Oregon, the bankruptcy courts are in Portland and Eugene. At the court’s website, you can find
information on forms, local rules, and more.

Oregon allows debtors to exempt up to $40,000 for real property you occupy or intend to occupy and up to $50,000 for joint owners. However, the real property cannot exceed 1 block in a town or city, or 160 acres elsewhere. Oregon also allows you to exempt up to $7,500 in bank deposits; alimony; child support; liquor licenses; up to $600 in books, pictures, and musical instruments; up to $1,800 total in clothing and jewelry; burial plots; up to $3,000 in a motor vehicle; and personal injury recoveries to $10,000, among other things. Here’s a list of Oregon
exemptions.

The Means Test

When you file for bankruptcy, you must compare your income to the
median income for a household of your size in Oregon. If your income is less than
the median, you will be eligible to file for Chapter 7 and, if you choose to
file for Chapter 13, you can use a three-year repayment plan (rather than five
years).

Currently, the median Oregon income for a one-person household is just under $43,000; these figures change periodically. You can find the most recent amounts on the website of the U.S. Trustee at www.justice.gov/ust. Click on “Bankruptcy Reform,” and then “Means Testing Information.” Or go directly to the Census Bureau table here.

Debtor Education

After you file for bankruptcy but before you receive your
discharge, you must take a debtor
education course. Like the mandatory credit counseling you must take before
filing your forms, you must receive debtor education from an agency approved by
the U.S. Trustee’s Office. Here a list
of agencies approved to provide this course in Oregon.